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Channeling Emerging Partnerships for

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Stanley Boots

on 25 November 2014

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Transcript of Channeling Emerging Partnerships for

Channeling Emerging Partnerships for
Innovative PPPs in Education

Introducing social and education PPPs
PPP Definition in Philippines:
Infrastructure and development projects normally financed and operated by the public sector
Implemented by private sector through contractual arrangements
Private sector may take a reasonable rate of return
Benefits sought from PPPs in education
PPP contracts are tailored to better fit supply and demand in education

By bidding the contracts, government have control to define the specific requirements and quality specifications

PPP contracts shift some risks onto the private sector which it may be able to more efficiently manage when compared to the public sector

PPP's create competition in the overall education market--pushing the trend toward better quality education (even for government schools)
Typical Education PPP Contract Options
Core elements of successful PPPs:
delivery of public
--not just buildings
of service provider
payment linked to
public sector
for PPP

Key characteristics of an education PPP
Alternative to the public finance and public delivery of important education services
Government contracts with the private sector to provide:
specified services
defined quantity and quality
agreed price
agreed period of time
rewards and sanctions linked to performance
"Risk should be allocated to the party best able to manage that risk in the most efficient and cost effective manner."
Operational services
Education services
Facility availability
Combined: facility availability and education services
support services such as catering, supplies procurement and transportation

school management support (e.g. financial and HR)

professional services including curriculum design, teacher training, textbook delivery, quality assurance and other services
Examples of management services
(input type)
Examples of operational services
(process type)
building maintenance
provision of education to students
professional services
financial and human resource management
"The main rationale for developing PPP's in education is to maximize the potential for expanding equitable access to schooling and for improving education outcomes, especially for marginalized groups."
World Bank, The Role and Impact of Public-Private Partnerships in Education
What governments get from a PPP
Inputs: the government buys the services needed to produce education

Processes: the government contracts for the process of delivering education

Outputs: the government contracts for provision of eduction to targeted groups
Education services
(outputs type)
contract with private schools to take on targeted students
Facility availability
(inputs type)
construction and maintenance of infrastructure
Combined: facility availability and education services
(input and output type)
provision of infrastructure combined with desired services such as operational services or even educational outputs
Core topics for workshop
harnessing innovation beyond mere construction of buildings
taking a whole of life costs perspective on school infrastructure and services
recognizing desirable outputs and how to contract for them
learning from other success stories
Maraming salamat!
Challenges for countries embarking on social PPPs
mental shift to get past traditional procurement
distrust of private sector motives
capacity building
cost-benefit analysis
need analysis
value for money (VfM)
procurement cycle
engagement with private sector (contract skills)
managing consultants
PPPs are NOT free projects
PPPs are complex
Core contract elements:
specificity on services and deliverables
schedule of activities over duration of contract
payment mechanism
performance standards linked with rewards and penalties
termination events
lender rights and interventions
Full transcript